acquisition of the real estate division of Fundamenta Group

Ad Hoc announcement pursuant to article 53 LR

PRESS RELEASE

Zug, 14. March 2024

• Acquisition of the real estate asset management companies of Fundamenta with assets under management (AuM) of CHF 4.2 billion
• Fundamenta to be integrated into the Asset Management division Swiss Prime Site Solutions («SPSS»)
• Creating Switzerland’s largest independent real estate asset manager by a distance, with total AuM of CHF 13 billion
• Fundamenta will bring a considerable investor base of 2 000 institutional and private real estate investors
• SPSS’s existing product portfolio will be expanded with the listed vehicle Fundamenta Real Estate AG, as well as a Luxembourg SICAV fund and further investment products
• The transaction will be financed in cash (75%) and shares (25%)

Swiss Prime Site signed an agreement to acquire Fundamenta Group (Schweiz) AG and Fundamenta Group Deutschland AG (together «Fundamenta»). It has thereby significantly expanded its rapidly growing asset management division.

Fundamenta: a specialist real estate asset manager with a focus on residential

Fundamenta, founded in 2006 and based in Zug and Munich, is a leading independent asset manager with real estate assets under management of CHF 4.2 billion across various investment vehicles (listed real estate company, investment foundation, promotion vehicle, fund, SICAV and direct mandates). Fundamenta has around 2 000 investors and serves institutional clients (e.g. pension funds, banks and insurance companies) as well as high net worth private clients and family offices. CHF 3.3 billion is invested in Swiss real estate, with a residential proportion of 75% – 100%, depending on the vehicle. One of Fundamenta Group Switzerland’s main strengths lies in attractive «club deals», i.e. promotional collaborations with co-investors for residential developments. A further CHF 0.9 billion in AuM comprises core residential property in Germany, which is managed through an established organisational structure in Munich. Fundamenta generated income of more than CHF 24 million in 2023. The approximately 60 employees who work in Zug and Munich have many years of experience and expertise in the different markets and are all being retained by Swiss Prime Site.

René Zahnd, CEO of Swiss Prime Site, said: «Fundamenta is a perfect fit for us. With this move, we are continuing to pursue our focused real estate strategy and substantially strengthening the asset management arm of Swiss Prime Site Solutions. We are thereby growing and expanding our investor base and broadening our product range, especially in the residential segment. Furthermore, we will now be able to offer our Swiss clients direct access to the German real estate market, which we believe will present an attractive option alongside Swiss investments in future. Throughout the whole process, our team and I also felt we were a really good fit culturally. On that note, I would like to extend a warm welcome to all our new clients and employees.»

David Garcia, founder and director of Fundamenta Group, added: «Having founded and then successfully built the company over the past 18 years, our family is now very proud to be handing over our real estate division to Swiss Prime Site. Ensuring long-term continuity for investors, employees and partners was a key concern for us during the process. But with Swiss Prime Site, this is now guaranteed.»

Swiss Prime Site is acquiring Fundamenta (Schweiz) AG and Fundamenta Deutschland AG from the existing shareholders, who comprise the Garcia and Marxer families, the Luzerner Kantonalbank and the management. The acquisition is being financed with shares from the authorised capital of Swiss Prime Site (25%) and cash from available liquidity (75%), with the aim of maintaining the loan-to-value ratio of the property portfolio (LTV) below 40%. The parties have agreed to not disclose the transaction price. The transaction is expected to be completed in the second quarter of 2024; no further approvals are necessary. Swiss Prime Site will acquire all naming rights for Fundamenta.

The asset manager Belvédère Asset Management, which was founded in 2001 and has around CHF 3 billion in assets under management, will remain in the ownership of the existing shareholders together with the associated brand and will continue to operate unchanged. Swiss Prime Site Solutions will be retained for real estate investment mandates in the future.

Broader product range and further economies of scale for Swiss Prime Site Solutions

Following the acquisition, Swiss Prime Site Solutions’ managed property portfolio will be worth CHF 13 billion, making SPSS Switzerland’s largest independent real estate asset manager by a distance. Furthermore, Swiss Prime Site Solutions will now be able to offer its clients direct access to the German real estate market. Pro forma, the joint portfolio is divided into residential properties at a proportion of 63% and diversified commercial properties at 37%. It generated total fee-related earnings of CHF 73 million in 2023. The new investment vehicles and complementary investment products will create considerable added value for clients. Use of the Swiss Prime Site platform, through which properties with a total value of almost CHF 26 billion are now managed, will lead to organisational and sales-related economies of scale.

Following successful integration and the associated realisation of the expected revenue and cost synergies, Swiss Prime Site expects the acquisition to increase consolidated FFO I per share by around 20 cents, with a portion of this already occurring in 2024.

If you have any questions, please contact:
 
Investor Relations, Florian Hauber
Tel. +41 58 317 17 64, florian.hauber@sps.swiss
 
Media Relations, Patrick Djizmedjian
Tel. +41 58 317 17 42, patrick.djizmedjian@sps.swiss
 

Fundamenta contact

Founder and director of Fundamenta Group Holding AG, David Garcia
Tel. +41 44 444 22 22, david.garcia@fundamentagroup.com